Energy experts have warned against the high rate of energy consumption in the Kingdom that may have implications for the country’s economy.

The sectors that are most energy-intensive in consumption levels are the services sector with 51 percent of the total energy consumption, followed by the transport (21 percent), industry (15 percent) and the remaining sectors with (5 percent), according to them.

The domestic consumption rates of energy are accelerating at an annual rate of 4 to 5 percent in oil and gas. This rate is much higher than the economic growth of the Kingdom. The continuing energy consumption will lead to more wastage of the vital resource leading to a fall in oil revenues of a country that has no other export alternatives available in the immediate future.

Abdulhameed Al-Naiem, head of the eastern sector at Saudi Electricity Company said that extensive efforts have been made to keep up with the power demand. “Such efforts include the system of changing tariffs-time of use (TOU) network tariff-on which the Electricity and Co-Generation Regulatory Authority (ECRA) has issued a decision to apply the changing tariffs on industrial subscribers during the summer season,” he said.

Al-Naiem explained that the aim of the changing tariff is to reduce the electricity loads during peak times. “The other track we’ve taken is to impose the mandatory installation of thermal insulation in all the new residential and commercial buildings in compliance with the royal decree,” he added, noting that the costs of thermal insulation are less than 5 percent of the total cost of construction, but save more than 30 percent of the electricity bill during the summer season.

He said the other measures involve the “thermal storage system” and the A/C chillers to reduce electricity loads during peak times.

Abulaziz Al-Mulhim, head of the awareness campaign of the Saudi Energy Efficiency Program (SEEP) said the Kingdom’s leadership is aware of this grave problem and its implications for the national economy. “The Kingdom has been making great efforts to raise energy efficiency in the country over the last decade or so in view of the growing demand for electricity,” said Al-Mulhim, adding, “These efforts were crowned by the establishment of the SEEP which has developed a national program for the rationalization of energy consumption and raising energy efficiency to address the challenges facing the energy sector in the Kingdom with a comprehensive approach.” He said the most important factor in the success of these efforts is to spread awareness of the size of the problem in the community. “To solve this problem, it requires focused and sincere efforts of everyone involved, including the private sector, its institutions and businessmen,” he added.